Email this article to a friend

Citigroup has won a bookrunning role for a $400m (â¬308m) convertible bond for LG.Philips, alongside Morgan Stanley and UBS, which led the Dutch-South Korean television and computer maker's flotation last year.

The proceeds will be used to fund its capital expenditure in Korea, the company said.

The five-year convertible, which does not pay any interest, was launched on Wednesday with a premium of between 30% and 35%. The final premium was set at the low end of the range at 30%.

The bonds are redeemable at maturity at a price of 117.49% of their principal amount, equivalent to a yield-to-maturity of 3.25% per year.

Last July, LG.Philips was forced to cut the price and size of its $1bn initial public offering on the New York Stock Exchange.

American depositary shares were issued at $15 each, the bottom end of the bookbuilding range and fell to $14.05 on their first day of trading. They have since risen to $22.05, 47% above the offer price.